Adani-promoted Ambuja Cements on Monday announced plans to invest Rs 6,000 crore to set up a 1,000 megawatt (Mw) renewable power unit for captive consumption.
The company said the investment will be funded through internal accruals and be completed by FY26.
“The company has committed a significant investment of Rs 6,000 crore in renewable power projects, targeting a capacity of 1,000 Mw,” the statement said. It added that the investment will encompass solar and wind power projects in Gujarat and Rajasthan.
The investments include a 600 Mw solar power project and a 150 Mw wind power project in Gujarat and a 250 Mw solar project in Rajasthan. Of this, 200 Mw is expected to become functional by March next year and the rest by FY26.
The company added that these investments also promise economic advantages to Ambuja’s planned larger capacity of 140 million tonnes per annum (MPTA) (including ACC).
“With the lower cost of generation from green power, the power cost will come down from Rs 6.46 per kWh to Rs 5.16 per kWh. A reduction of Rs 1.30 per kWh (20 per cent) translates into Rs 90 per tonne of cement for the targeted capacity of 140 MTPA by FY28,” the company said.
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With the investment, Ambuja expects green energy to contribute 60 per cent of the energy requirements of its planned 140 MTPA unit, from the current 19 per cent.
Ambuja Cements is not the sole company to focus on green energy usage.
Its closest rival, UltraTech Cement, earlier this month, announced plans to increase the overall share of green energy in its total energy mix to 85 per cent by 2030. Its interim target is 60 per cent (from the current 22 percent) by FY26.